Wed, 18 Jun 2025 | ADMINISTRATION
Administrators from Interpath Advisory are seeking offers for the business and assets of a dairy-free alternative milk brand, after the company fell into administration. Watkins Drinks Ltd, trading as Mighty Drinks, collapsed this week amid rising costs and weak consumer confidence.
Mighty Drinks, which is based in Leeds, produces a range of pea protein, oat milks and oat milk powders, with the company’s products sold nationwide at supermarkets and health stores, as well as via its website.
Like many companies in the plant-based food industry, however, the company has faced mounting headwinds over recent years, with consumer tastes and the cost-of-living crisis both impacting the popularity of plant-based alternatives.
These factors, in combination with rising costs, impacted Mighty Drinks’ ability to scale and, ultimately, to achieve profitability. In response, directors sought to explore the company's investment options.
However, it became clear that a solvent solution was not possible, leading the directors to appoint James Clark and Howard Smith of Interpath Advisory as joint administrators of the company on June 17.
Interpath Managing Director James Clark said that the joint administrators would work with stakeholders “to explore the options available, including seeking offers for the business and its assets, including the Mighty brand and related intellectual property.”
He added: We would invite any parties who may be interested in acquiring the business to make contact with us as soon as possible."
In accounts for the year to December 31 2023, the company’s fixed assets were valued at slightly over £900,000 and current assets at around £3 million, with net assets amounting to £3.2 million.
Discussing the company’s struggles, Tom Swiers, food and drink sector lead at Interpath, said: "There has been an increasing focus on profitability within all aspects of the 'alt' category, following the investment boom of a few years ago. It is no longer simply a case of, 'growth as number one priority'.”
"The Mighty team has created a great product, with an exciting kids-milk range set to launch with retailers given the allergen free benefits of pea-protein, and a path to profitability from improved margins and increased volumes. Unfortunately, however, this has come at a point in the company's cycle where it required further investment which was not forthcoming from typical investors in this space, nor was it attractive to typical 'special situations' investors given the relatively early stage of the company's development."
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